Exploring Intersections: A Comparative Analysis of the Psychedelic and Cannabis Industries

The cannabis and psychedelic sectors have a close relationship, much like that of siblings nurtured by devoted parents striving for their success. However, despite their shared origins, these two industries are on separate paths, each with its own complexities.

Cannabis and psychedelic compounds are often lumped together due to their common federal illegal status, despite the fact that they do minimal harm and have potential health benefits. While there are similarities between the two industries, there are also significant differences. This analysis aims to provide a comparative analysis of these industries, shedding light on their distinct characteristics.

One of the key similarities between the cannabis and psychedelic industries is the people who inhabit them. Many pioneers driving the psychedelic industry forward, be it through business ventures, grassroots initiatives, or personal advocacy, were the first part of the cannabis industry.

In the past, before the word “industry” could be associated with cannabis and psychedelics in a mainstream business environment,  those advocating for one often supported the other as well. During the times of complete prohibition, cannabis, and psychedelics frequently ran in the same crowds. Moreover, Many of the historical psychedelic icons were often associated with cannabis as well. For example, Ken Kesey and his Merry Pranksters became infamous for their role in the LSD movement in San Francisco. Kesey also got in trouble with the law for possession of cannabis. This correlation persists today as people continue to transition from the cannabis industry to the psychedelic industry.

Many individuals currently involved in the psychedelic industry have also been passionate supporters of cannabis. This can be seen in all areas of the industry. An excellent example is the work of Dustin Robinson, a lawyer, and investor who ventured into the psychedelic space when his cannabis law firm began receiving an influx of inquiries regarding the legal landscape of psychedelics. Robinson is not alone; several investors who played a pivotal role in the growth of the recreational cannabis market are now investing in psychedelics.

it is important, however, to note that the approach to capitalizing on these industries, at least in the near future, differs significantly. Investors looking to tap into the emerging psychedelic market will focus on companies that show promise in bringing new drugs or medical treatment infrastructure to the market within the next five years. This differs from the cannabis industry which is primarily focused on a recreational market.

Substantial returns on investments in the cannabis industry began pouring in only after its legalization for recreational use in states like Colorado and California. The medical stage of cannabis legalization, which is still going on in several states, offers little opportunity for significant investment returns. This distinction arises from the divergent medical benefits of cannabis and psychedelic compounds.

When considering the science and clinical research on these compounds, the paths begin to diverge. While cannabis offers some positive health benefits, such as pain and seizure relief, scientific studies have not shown it to be the “wonder drug” that many people thought it would be. On the other hand, psychedelics have already shown significant potential in treating over a dozen serious health conditions.

As a result, the cannabis industry has focused primarily on the recreational market— with a side of medicinal applications sprinkled in there. In contrast, the psychedelics industry aims to revolutionize the future of mental health treatment and pharmaceutical drugs.  Early investors in the psychedelic industry believed it would follow a similar trajectory to cannabis, if not a faster one, but they were mistaken. Cannabis has primarily become a recreational substance, more akin to alcohol, whereas psychedelics cannot be compared to anything currently on the market— recreational or medical.

That poses an important question— will psychedelics ever be legalized for recreational use? Frankly, it is impossible to say for sure. It certainly won’t happen any time soon. 

Some people in the industry, such as Mydecine CEO Josh Bartch, believe that psychedelic compounds should only exist in a highly-regulated medical container. On the other end of the spectrum, there are those who hold the Timothy Leary-influenced belief that they should be democratized and available for anyone to use. Companies such as Red Light Holland are already preparing for the recreational legalization of substances like psilocybin. Unfortunately, the company may be waiting a while for its opportunity to expand outside of the Netherlands market that it is currently operating in. 

We can speculate all we want about the long-term future of psychedelics, but there is no denying that the current opportunities are in the medical space. The reason that many big players in the two industries are the same is not because the industries are identical. No, it’s because people are as passionate about cannabis and psychedelics now as they were fifty years ago. Both have the potential to improve lives, and many are determined to bring them to the larger market so that others can also experience their benefits.

It is the fervent support from a large group of people that is ultimately driving both industries forward. Psychedelics, however, are moving towards legalization faster than cannabis did because of its ability to treat things like depression and PTSD with unprecedented success.

Psychedelics and cannabis have both faced a steep uphill battle against social stigmas that date back to the 60s. In many ways, the widespread acceptance of cannabis has made it easier to change people’s negative views of psychedelics. But there is more to it than that.

Science shows that psychedelics have the power to heal complex mental illnesses, such as PTSD, that have few viable treatment options. It is this fact that has forced lawmakers to take a serious look at legalizing psychedelic compounds for medical use, and it isn’t just happening in the progressive areas that have traditionally supported the legalization of cannabis. 

Just this month, Kentucky allocated tens of millions of dollars to researching ibogaine as a treatment option for opioid addiction. Psychedelics are gaining bipartisan support in the US in a way that cannabis has never seen. Shockingly, MDMA and psilocybin will likely become legal for medical use on a federal level before cannabis, which has been walking the legalization path for about twenty years. 

Although there are many differences between the two industries, there are enough similarities that some cannabis industries are considering crossing over into the psychedelic space. One of the big benefits of this is that cannabis extraction, cultivation, manufacturing, and testing companies often have a lot of the infrastructure in place which is needed to start working with natural psychedelic plants such as magic mushrooms or San Pedro. 

The equipment needed for these processes is incredibly expensive, so having companies that already have the facilities and the willingness to work with federally illegal substances is a positive thing for the psychedelic industry. Despite their differences, the cannabis and psychedelic industries will only continue to crossover in the future. 

The cannabis and psychedelic industries share some commonalities, such as their historical and cultural significance and therapeutic benefit. However, significant differences exist in terms of legal status, medical potential, public perception, and industry trajectory. While the ultimate output of the two industries will differ greatly, the input has more similarities than differences. Many cannabis supporters continue to pour into the psychedelic industry, especially on the investment side of things, and it is important for them to understand the things that set these two industries apart.